Intel’s stock price dropped after their Q2 revenue and profit forecast fell short of expectations

  • On the positive side, overall sales and PC chip sales are up significantly, which is good news. This suggests their new Intel Core Ultra processors for AI PCs are gaining traction.
  • However, the data center and network/edge device segments are showing weakness. The decline in foundry revenue is also concerning.

These contrasting factors likely caused the negative reaction from investors in after-hours trading, outweighing the positive sales figures.

  • Positives: Strong growth in overall sales (9%) and PC chip sales (31%)
  • Negatives: Lower-than-expected growth in data center chips (5%) and decline in sales for network/edge devices (8%) and foundry business (10%)

This highlights the ongoing challenges for Intel, particularly in keeping up with demand for advanced components outside of the PC market.